The "Big Agent" Mode Will Be Smashed.

The so-called big agent mode refers to a large agent who controls the agency of a brand in a province or several provinces.

It is understood that at present, more than 90% of China's fashion brands have adopted the mode of large agents to expand channels.

At the beginning of the establishment of the brand, the big agent mode opened up the market for them, and the rapid development saved a lot of time and manpower cost.

However, the disadvantages of this model are also increasingly apparent: large dealers divide and control, resulting in product price confusion and dealers in the region are not equal in policy, so that the fast fashion brand's sustainable development is in trouble.

In August, China's economy is still in the downward stage.

Most of the country has not yet entered the autumn, and the autumn new products in the shopping mall have already started 20 percent off discount.

At the same time, the major

The war of brand inventory clearance is also in full swing.

The brand suddenly understood at this time a truth: big agents can only add icing on the cake, unable to provide timely help.

Whether it is discounts, inventory or orders, large agents do not have their own direct stores more "obedient".

Big agents seek protection first.

In July 2012, China's CPI index is expected to fall below 2%, a record low of 30 months.

Among them, clothing prices rose by 3% over the same period, and clothing prices rose by about 3%.

Such a low price growth is in sharp contrast to the "rapid progress" of clothing prices two years ago.

"Now, many brands are cleaning up their inventory to recover cash."

A senior official from Metersbonwe revealed to reporters.

Not long ago,

The net assets are about 3 billion 200 million yuan, but half of them are clothing that has already been in season in the warehouse.

In fact, due to the decline in sales in the first half of this year, many brands are facing similar situations.

Clothing brands and large agents are beginning to face enormous inventory pressure. A large number of inventories have obviously hindered cash flow.

"Once there is inventory in the first half of the year, the big agents will adopt a conservative strategy in order to reduce orders or cancel orders in the second half of the order meeting."

The US state people told reporters that "on the one hand, there are not enough funds in the hands of large agents, and on the other hand, large agents consider increasing risks."

It is understood that more than 90% of fashion brands in China adopt the mode of agents to expand channels. The enthusiasm of agents determines the situation of brand dealers in the second half of the year.

Data show that: at the end of May clothing orders meeting, Semir's order quantity maintained only in single digit growth.

The announcement of the revision of China Daily's performance is expected to achieve a profit of 241 million ~2.84 billion yuan in the first 6 months of 2012, down by 35%~45% compared with the same period last year.

Reporters learned: Semir brand from the beginning of the adoption of the agent system mode.

Through agency mode, brand decentralization is given to agents, and agents are used to develop channels, thus saving a lot of time and labor costs for brand developers in the initial market development.

But now, when brands are in trouble, big agents are also hard to support.

As a big agent of a fashion consumer brand, Liu Bing is now facing the "torture" of the brand.

He said: "headquarters let us execute the order at the beginning of the year, but now the sales are not good. I can not continue to press the capital."

Excessive decentralization increases management difficulty

The friction between big agents and branding is not reflected now.

As a large agent has gained a great deal of authority, the agency system has also brought management trouble to brand dealers.

"The same product, the price of each dealer is not the same, after-sales service is also not convenient."

Liu Bing expressed his confusion to reporters.

For example, the same product, asking different distributors, has a variety of prices, because dealers selling prices from different agents are not the same, such as their own price war.

"If the agent feels that he has a good relationship with him, he will give more concessions, and who will get more sales opportunities for the main models."

Liu Bing said.

Such practices make the rights of dealers unequal, resulting in price confusion.

Pan Wenfu, a research expert on dealer problems, said: "when the rights and capabilities of agents are increasing, there will be a big bullying phenomenon. The management of headquarters will be more difficult, including price policy and so on."

Unlike Semir, Metersbonwe has been promoting flat sales routes, directly dealing with distributors and giving dealers equal treatment.

"We have no special preferences for all distributors. We do not want to develop large agents, which are very bad for us."

Senior executives at Metersbonwe told reporters that dealers are taking the role of terminal drive, that is, constantly introducing new products and promotional activities to stimulate consumption rather than giving dealers more favorable conditions.

Therefore, Metersbonwe has also developed its distribution network rapidly.

Smashing big agent mode

"Big agents are often diced and treated, and they have a great say in products."

Former Canon China former representative told reporters, "in the promotion of products, agents often put this responsibility on the brand business, which limits the healthy growth of the brand."

It is understood that, at present, IT, digital and other consumer products have launched the campaign of integrating channels, abolished the mode of large agents, changed them into direct battalions, or directly channeled the channels, and the brands directly faced with small agents.

For brands, the abolition of large agents can not only reduce intermediate links, but also increase more profits.

"If an agent thinks he has a good relationship with him, he will give more concessions, and who will get more sales opportunities."

Li Yu, a former agent of Semir in North China, told reporters.

Dealers' inequality in gaining rights has also led to price chaos.

It may be a wise choice to choose an integrated channel at this point in time.

Pan Wenfu thinks, "cancel agent, need manufacturer and distributor to establish connection directly.

It is easier to establish relations with each other when the market demand is widening because it requires closer ties between the two sides.

"If we can seize the opportunity and make our channel more flattened, we will get more profits if we keep the price of the terminal unchanged, that is, the profits from the original agents will be assigned to the manufacturers."

Pan Wenfu said, "in any case, the channel revolution is a painful process, and we should prevent the possible retaliation of large agents."

However, Yang Yeqing, a brand marketing expert, told reporters that the cost of cancelling large agents is amazing.

It used to be a general with a group of soldiers. Now that every soldier has to interact directly with the brand, or every soldier is your own development, you have to think about how high the management cost is. "He even believes that if the deal is not good, some brands will smash the big agents, which may mean the death of the brand.